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Presented Below Is the Operating Activities Section of the Statement

Question 82

Multiple Choice

Presented below is the operating activities section of the statement of cash flows for Feline Friends Corp.for 2016:  Operating activities:  Cash collected from customers $165,000 Cash payments for merchandise (83,000)  Cash payments for operating expenses (58,000)  Net cash inflow from operating activities $24,000\begin{array}{l}\text { Operating activities: }\\\begin{array} { l r } \text { Cash collected from customers } & \$ 165,000 \\\text { Cash payments for merchandise } & ( 83,000 ) \\\text { Cash payments for operating expenses } & \underline { ( 58,000 ) } \\\text { Net cash inflow from operating activities } & \underline { \$ 24,000 }\end{array}\end{array} Which method of preparing the operating activities section has Feline used?


A) The direct method
B) The indirect method
C) Either method
D) Cannot be determined without further information

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